On a quiet mid-March afternoon, the parking lot of International Marketplace, Point Roberts’ largest grocery store, had only a handful of cars. Inside, aisles were mostly empty, with only employees and a few customers browsing shelves. The town, a unique American exclave bordering Canada, has long depended on Canadian visitors. But as the U.S.-Canada trade war escalates, businesses here are feeling the pinch.
A Community Tied to Canada
Point Roberts is a 5-square-mile territory in Washington state, cut off from the U.S. mainland and accessible by land only through Canada. Despite being American soil, it operates much like a Canadian town. Nearly 40% of the town’s 1,275 residents are foreign-born, many holding dual U.S.-Canadian citizenship. Local businesses thrive on cross-border trade and tourism, particularly during the summer months.
“We’re about as Canadian as an American town can be,” said Wayne Lyle, a local realtor and president of the Point Roberts Chamber of Commerce.
During the COVID-19 pandemic, a 19-month-long border closure devastated the local economy. While an emergency ferry service connected residents to Bellingham twice a week, foot traffic never fully recovered. Western Washington University’s Border Policy Research Institute reports a 32% drop in vehicle crossings into Point Roberts from 2019 to 2023.
Now, a fresh economic challenge looms. Rising tensions between the U.S. and Canada, spurred by trade disputes and political rhetoric, have left businesses in limbo.
Tariffs and Tensions Shake Business Confidence
Former President Donald Trump has amplified tensions with remarks about Canada potentially becoming “the 51st state.” Last month, he announced a 25% tariff on imported steel and aluminum, triggering retaliatory tariffs from Canada on U.S. poultry, beer, and apparel. While Trump later scaled back some tariffs, Canada has kept its 25% levy in place, vowing to maintain it until U.S. tariffs are lifted.
With additional U.S. tariffs set for April 2, a “Buy Canadian” movement has gained momentum across the border, further squeezing Point Roberts businesses.
“Canadians are angry,” Lyle said.
Retailers and Restaurants Face Plummeting Sales
Local businesses are already seeing the effects. Neil King, owner of Kora’s Corner and the attached Rubber Duck Museum, said the uncertainty is crippling.
“You wake up every day not knowing if it’s a tariff day or not,” King said.
Several suppliers have already raised prices by 10% to 20% due to tariffs. Despite keeping prices artificially low for Canadian customers, the store saw a dramatic decline in February, logging just 30 transactions compared to 120 the previous year. On one particularly slow day, the store made just $6.
Canadian customers have even reached out directly, telling King they won’t be visiting due to the trade dispute. Some have also questioned whether Point Roberts voters supported Trump.
Grocery Stores Struggle to Stay Afloat
Ali Hayton, owner of International Marketplace, has faced a similar downturn. The store, owned by her family since 1998, already deals with high operational costs, including over $2,000 a week in delivery fees due to the town’s isolated location. Without a local supply chain, she relies on a single wholesaler, making the store vulnerable to price fluctuations.
At the start of 2024, her business was still 20% below pre-pandemic levels. Since January, it has dropped even further—now down 40%. Some customers have returned groceries after being charged a 25% tax at the border.
“Every time [Trump] calls Trudeau ‘the governor,’ I just want to spit nails,” Hayton said, frustrated by the political discourse fueling economic hardship. “It’s just completely disrespectful.”
Restaurants on the Brink
Tamra Hansen, owner of Saltwater Cafe and The Pier Restaurant, describes business as “absolutely dead.” Typically, 90% of her customers come from Canada, but many are now hesitant to cross the border.
Loyal customers continue to visit, but some do so quietly. “One told me they wouldn’t tell their neighbors in Canada that they came,” she said.
In February, her sales were down 55% year-over-year.
Nick Kiniski, owner of Reef, another local restaurant, has been forced to reduce staff to one cook and one bartender. After 36 years in business, he’s considering selling due to financial stress.
“I haven’t felt this rough in years, just stress,” Kiniski said. “It could bankrupt me.”
A Critical Summer Ahead
The coming months will determine whether businesses can survive the trade war’s impact. Spring break typically brings an influx of Canadian visitors, and the long-awaited reopening of Bald Eagle Golf Club in April could help draw more tourists.
Still, uncertainty remains.
“Tariffs are like a slap in the face after what we went through with COVID,” said Tracy Evans, the club’s general manager.
Hansen, whose cafe is decorated with both American and Canadian flags, hopes for a resolution soon. A chalkboard inside Saltwater Cafe reads: “Point Roberts residents support Canada.”
“We’re just taking it day by day, hoping our governments can work out a deal quickly,” she said. “We can’t afford another long disruption like we had during the pandemic.”
